Boeing execs barred from flying business class to save money during strike

• Boeing is "eliminating" first and business-class travel for executives, per a memo seen by BI.
• The aviation giant is battling to cut costs after thousands of workers went on strike.

Boeing's executives have been barred from flying business class as the company battles to cut costs amid an ongoing strike.

In a memo to employees on Monday, which has been viewed by Business Insider, Boeing CFO Brian West laid out the actions that the company is taking to preserve cash as thousands of its workers go on strike.

West said the company would eliminate all first—and business-class travel for workers, including executives. He also said the company has implemented a hiring freeze and would consider furloughing some workers.

It comes after more than 30,000 of its workers in the US rejected a new pay offer and voted to strike on Friday.

The planemaker said it's also pausing pay increases for managers and execs and asking suppliers to halt shipments of parts for some planes.

Boeing is even stopping all non-customer-related catering services at its offices, per the memo, with West warning that Boeing's business is entering a "difficult period."

Previous strikes have badly hit Boeing's bottom line, costing the aviation giant billions and delaying plane deliveries.

A research note from investment bank TD Cowen cited by The New York Times predicted that a strike of the same length as Boeing's last walkout in 2008, which lasted nearly two months, would cost the company as much as $3 billion.

It's unclear whether Boeing's restrictions on executive travel extend to private jet usage. BI previously reported that Boeing's fleet of corporate planes spent around 4,500 hours in the sky last year at a cost of about $14 million in fuel.

The strike is a further blow to Boeing, which is facing scrutiny over safety and an ongoing federal investigation following the midair Alaska Airlines 737 Max 9 door plug blowout in January.

Boeing referred to West's comments and declined to comment further.